Q2 2019 Investment Highlights2

  • Total Investment into Grayscale Products: $84.8 million
  • Average Weekly Investment – All Products: $6.5 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $4.9 million3
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust4: $1.6 million
  • Majority of investment (84%) came from institutional investors, dominated by hedge funds.

H1 2019 Highlights5

  • Total Investment into Grayscale Products: $127.4 million
  • Average Weekly Investment – All Products: $4.9 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $4.1 million6
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust7: $0.8 million
  • Majority of investment (80%) came from institutional investors.

Trailing 12-Month Highlights8

  • Total Investment into Grayscale Products: $238.6 million
  • Average Weekly Investment – All Products: $4.6 million
  • Average Weekly Investment – Grayscale Bitcoin Trust: $3.7 million9
  • Average Weekly Investment – Grayscale Products ex Bitcoin Trust10: $0.9 million
  • Majority of investment (75%) came from institutional investors.

The Takeaway

Grayscale assets under management (“AUM”) nearly tripled from $926 million to $2.7 billion amid digital asset market resurgence: The digital asset market rebound gained momentum in Q2 2019 as all ten investment vehicles in the Grayscale family of products generated positive performance net of fees. Quarterly returns for industry benchmark products Grayscale Bitcoin Trust and Grayscale Digital Large Cap Fund were 178.8% and 147.6%, respectively.

Strongest quarterly inflows since Q2 2018 (~$85 million) driven by “in-kind” creations: Inflows nearly doubled quarter-over-quarter, from $42.7 to $84.8 million, demonstrating that the recent rally in digital asset prices is supported by fresh investment and despite the fact that the Grayscale Bitcoin Trust was temporarily closed to new investment throughout May and June. More than 70% of inflows this quarter were associated with contributions of digital assets into the Grayscale family of products “in-kind” in exchange for shares, an uptick from the longterm trend.

“Alt” investment cycle resumes led by Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust: This quarter, Grayscale Products ex Bitcoin Trust accounted for 24% of inflows, capturing a larger slice of the pie compared to 1% of inflows observed in Q1 2019. Q2 2019 inflows into the Grayscale Ethereum Trust reached $14 million followed by Grayscale Ethereum Classic Trust which reached $5.5 million. In addition, 76% of Q2 2019 inflows were into Grayscale Bitcoin Trust.

Institutional demand strengthens: This quarter, institutional investors comprised the highest percentage of total demand for Grayscale products (84%) since we began publishing this report in July 2018.

Download the full Grayscale Digital Asset Investment Report (Q2 2019) below.

1. As of June 30, 2019.
2. For the period from April 1, 2019 through June 30, 2019.
3. Grayscale Bitcoin Trust was closed to new investment from May 1, 2019 through June 30, 2019.
4. “Grayscale Products ex Bitcoin Trust” include Grayscale Bitcoin Cash Trust, Grayscale Ethereum Trust, Grayscale Ethereum Classic Trust, Grayscale Horizen Trust, Grayscale Litecoin Trust, Grayscale Stellar Lumens Trust, Grayscale XRP Trust, Grayscale Zcash Trust, and Grayscale Digital Large Cap Fund.
5. For the period from January 1, 2019 through June 30, 2019.
6. See footnote 3.
7. See footnote 4.
8. For the period from July 1, 2018 through June 30, 2019.
9. See footnote 3.
10. See footnote 4.